Wisconsin native, conservative critic of everything.
"Once abolish the God, and the government becomes the God." ---G K Chesterton
"The only objective of Liberty is Life" --G K Chesterton
"Fallacies do not cease to be fallacies because they become fashions" --G K Chesterton
"A man can never have too much red wine, too many books, or too much ammunition." -- Rudyard Kipling

Thursday, January 24, 2008

Crawling Back to "Income Averaging"?

The business tax portion would give businesses incentives to invest in plants and equipment, give small businesses more generous expensing rules, and allow businesses suffering losses now to reclaim taxes previously paid.

At one time, the IRS Code allowed "income averaging," which was VERY useful to businesses which had "high year"/"low year" cycles. The method facilitated paying taxes (because in a "high year" the cash was there) and recognized that in a "low year" that cash was very hard to get.

Looks like the Congress may be sliding back towards that eminently sensible tax policy.